All taxpayers must retain all taxation records for a period of five (5) years (7 years for companies) after the lodgement of the relevant Income Tax Return.
Also if the document relates to the acquisition of a depreciable asset, then these records need to be maintained for a period of five (5) years (7 years for companies) after the date of the last depreciation claim (not the acquisition date).
In relation to payroll records we recommend keeping records for the entire period of any staff members’ employment and then for a further 5 to 7 years after the employees leave your employment. If a pay dispute ever arises you will need to have good records to substantiate your position.
Keeping electronic records will generally be totally acceptable – so we recommend investing in a good quality scanner! Please refer to our page on everything you need to go paperless.